Zillow’s Look at Second Quarter Performance in Five Markets
By: Stan Humphries, VP, Data & Analytics | August 14, 2006
Today, Zillow released reports of second quarter real estate performance in five metropolitan areas: Seattle, San Francisco, Los Angeles, Phoenix and Miami-Fort Lauderdale. The reports examine changes in the Zindex observed in the market areas for both single-family homes and condominiums; variation in the metro areas by neighborhood or ZIP code; longer term changes in price levels across the metro regions; and some insight into popular geographic areas heavily searched by Zillow users.
While many users are familiar with historical trending for Zestimates on individual homes, by aggregating these individual Zestimates into a Zindex for a particular geographic area, Zillow is able to look at overall market trends. We believe that this gives a unique perspective on market performance as the Zindex is a complete picture of value in these markets since it is based on values of all homes in an area, not just those than sold in the past quarter.
Some of the key findings from the reports include:
- All five markets examined show signs of slowing price appreciation in the second quarter of 2006 with second quarter annualized appreciation lagging appreciation rates over the past year.
- While the five markets examined are slowing, price appreciation still remained positive in all markets and quite robust in some of them. In fact, single-family house appreciation in all five markets outpaced the U.S.rate over the past quarter.
- At a sub-metro region level, price appreciation remained strongest in many of the more expensive areas of the metro regions.
- Zillow users show particular fascination in the areas of each city with the priciest homes, searching for homes in these areas at a much higher rate than other homes in the cities.
Click here for full reports. We’d love to hear about other analyses or questions in which readers of these reports are interested, so please let us know in the comments section and we’ll try to incorporate in the reports next quarter.
- Stumble it!
- Categories: Real Estate Industry, Zillow
Comments
17 Comments so far
Enjoy this post? Subscribe to the Zillow Blog feed or get updates via e-mail
Craig Parietti on August 15, 2006 8:35 am
Your Second Quarter Performance report for Seattle generally does an excellent job of providing a picture of the market; especially like your 1996 to 2006 comparison by neighborhood.
Do suggest you rethink your approach to annualizing quarterly appreciation rates for neighborhoods. In Broadview you report a 46% annualized growth based on 3 months of data. Since the 1 year appreciation is 17.8%, this implies an annualized growth rate for the 9 months prior to Q206 of 7%. I can’t believe this represents a true picture of the Broadview market - 7% annualized growth over 9 months, spiking to 46% annualized growth over past 3 months.
The Future of Real Estate Marketing on August 15, 2006 9:24 am
Zillow Could End Up Replacing NAR
Stan Humphries on August 17, 2006 10:19 am
Thanks for the feedback, Craig, and good point. As it sounds like you know, annualization is a good method generally for putting rates over different periods on an equal footing and, for the most part, it gives an accurate sense of how rates are changing over time in most of the geographies we covered in these reports. In future reports, we’re likely to move to either year-over-year change in appreciation (our overall Seattle charts in Figures 1 and 2 already show YOY rates) or a seasonally adjusted annualized appreciation rate. Both of these approaches will control for seasonal effects which can tend to make rates volatile from period-to-period. We’re also looking at some other measures which are more resistant to short-term bursts in appreciation rates which are, more than likely, not going to continue over a full year (possibly the scenario that is afoot currently in Broadview). Regardless, any of these alternate measures are likely to result in a similar substantive interpretation which is that Broadview has been doing relatively better than other Seattle areas over the past quarter (although they will differ in the magnitude of the annual effect that can be generalized from the past three months).
DanG on August 20, 2006 11:34 pm
Thanks for publishing this Stan: These reports are amazing. I hope you publish them every quarter (or, better yet, every month).
Pine Needle Lawn on August 21, 2006 8:34 am
Carnival of Real Estate Blogs
The Pine Needle Lawn is the happy host of this weeks (6th edition) Carnival of Real Estate Blogs. What is a blog carnival? Get the answer here. This carnival was started by the folks at the Zillow Blog to help bring the real estate blogging comm…
zara dalmazia on August 24, 2006 10:40 pm
dfg34hdb
codifica c regalo cucciolo aosta rigore cucchiaio
stampante carta fotografica on August 30, 2006 11:43 pm
dfg34hdb
conquista paradiso titolo canzone appartamento casa vendita provincia alessandria carta yu gi oh comprare
rosella brescia nuda on August 30, 2006 11:44 pm
dfg34hdb
vendita batteria moto azienda trasporti comune bologna elezione amministrativa provincia brindisi
self help for debt relief2c round rock2c tx on September 4, 2006 7:33 am
dfg34hdb
amsterdam hotels dolen dvd x copy platinum software homepage where can i find information on the kung peop…
copyright 2004 on September 6, 2006 5:20 pm
dfg34hdb
trasformazione societa persona ditta individuale modulo contratto donazione cordone ombelicale roma
cromatica pomodoro or analisi cromatica pomodoro or pomodoro or analisi on September 7, 2006 7:01 am
dfg34hdb
contrada pantera disoccupato organizzati kit punto a croce
campanile hotel francia on September 10, 2006 5:30 am
dfg34hdb
cache 0xffffffff internet cappella sacra sindone acero canadese
modem interno isdn drive on September 11, 2006 6:30 am
dfg34hdb
attacchi manubrio cyborg evo lavastoviglie ariston modo uso
ventaclub fontane bianche on September 11, 2006 6:32 am
dfg34hdb
crack google earth pro baule midollino flipper indiana jones
jean on October 23, 2006 5:58 pm
Best new local classifieds site in South Florida is called pines4sale. http://www.pines4sale.com/ is a local Free Classifieds for the city of pembroke pines Florida.
Philipp from Hamburg/Germany on August 24, 2007 12:41 am
Good morning from Hamburg, as a real estate agent and co-owner of a realty I`m really jealous about the data published. In Germany there is no public data like that. We have to wait until we get the public data by the government. The prices of sold homes are only availabe in an aggregated way, so a “zestimate” would never be possible in Germany.
David G from Zillow.com on August 24, 2007 8:51 am
Good morning, Phillip,
Thanks for the visit! Anything’s possible